Impeachment NOT Hurting Markets
Editor’s Note: Small technical issue with today’s video. Please skip past the first 17 seconds to start the video.
Welcome to the Rude Awakening for January 14, 2021…
Some headlines for today…
President Trump has been impeached for the second time now, but the news doesn’t seem to be affecting the markets, nor does it appear this impeachment will come into play before he’s out of office.
Jobless claims are coming in, surging to their highest levels since August 2020. That’s not a good sign for the economy, but there is market movement happening to the upside.
The S&P is up about 12 points as I write, the Nasdaq up 62 points, and the Dow up 145 points.
So, strength is once again building.
Market Movers to Watch Today
The first one is GameStop Corp. (GME). This is a company that was practically left for dead, due to their model becoming outdated. They sold video games in storefronts, and now almost all video game commerce is done through streaming.
But yesterday, the stock gapped up from about $20 to almost $40 at its peak. Today, it’s trading around the $36/$37 level. Company activity is the cause. And lots of investors are flocking to it — trading volume for today is already over 12 million.
This is definitely one to watch as their plans develop.
Also gapping to the upside is Virgin Galactic Holdings, Inc. (SPCE). There are a lot of nice technical indicators pushing SPCE to its recent highs around $36. Currently, it’s trading around the $32 level.
Next we have Delta Air Lines, Inc. (DAL), reporting abysmal results, as you can imagine given the way the pandemic has knocked the air out of travel.
However, they have their cash burn and that’s being seen as a tremendous positive on Wall Street. This one could be a buy opportunity. DAL is trying to push back up to highs from this time last year, when it was trading around the $60 level. Today it’s up over 3.5% at about $42.
Plus, the whole semiconductor sector is taking off right now. So, MKS Instruments, Inc. (MKSI) has been shooting higher. It’s already up 5.5% this morning.
We are looking for a pullback on MKSI after the parabolic move it’s had in the past few weeks, and this morning especially.
Plug Power Inc. (PLUG) is another one we’re looking at. This one has absolutely exploded to the upside. There has been a ton of activity in the EV market, and PLUG’s battery power is allowing it to capitalize on that momentum.
Technicals show that PLUG is a bit overvalued, so this is another one we are looking for a pullback, or it could be a bearish opportunity for you.
Last but not least, we’re watching Nordstrom, Inc. (JWN). Reporting results and down over 3% this morning, we believe this is another bearish opportunity. We feel it’s overvalued at its current $36 level.
Take advantage of some of these opportunities as they present themselves!
Markets are still up.
We’ll see if those gains can hold today…
Or if we’ll end up giving them back.
Have a good trading day.
We’ll talk to you again tomorrow!
Editor, Rude Awakening